NYSEAM:SVLC - Post by User
Post by
Wisdomwithageon Aug 29, 2015 5:08pm
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Post# 24062634
Still Disappointed With the Deal But On The Bright Side ....
Still Disappointed With the Deal But On The Bright Side ....Hey Mates,
I'm still not enamoured with what has happened here, but there are some positives that should come out of it: - although our current management appears somewhat burned out after bringing us through the exploration and development stages to production, the new combined management team should be one of the best in the business.
- FR was trading in the mid 20s and was expected to move higher before the PM market flamed out. That's a five bagger from the current price of FR. The addition of SVL resource and personnel assets should move FR back well beyond the old mid 20 range, and we'll be part of it.
- the AISC of the combined PM assets should decline nicely, making FR one of the lowest cost producers in the business
- we as SVL shareholders are teaming up with a solid proven medium producer; the synergies the combination brings is excellent
- just 2 years ago had FR made an offer for SVL, the ratio would have been about .13. However we are getting about .28 at this time plus shares in a spun-off newco
Do I wish we had stayed the course and grown SVL. Yes! But with the global commodities climate we find ourselves in, consolidation is sometimes inevitable and a smart idea.
I'm forever the optimist and see a bright future for us with FR as part of the team. JMHO!
Cheers,
Brit